Article Date:
April 2012

Word Count:



Should Your S Corporation Have an S Corporation Subsidiary?

If you’re one of the 2.4 million business owners who operate as a one-shareholder S corporation, you likely do so to save on Social Security and Medicare taxes.1


The S corporation has another nifty advantage most people don’t know about: it can form a subsidiary corporation and elect to have it treated as a qualified subchapter S subsidiary—also known as a QSub.




A QSub is disregarded for federal income tax purposes.


As far as the IRS is concerned, the parent S corporation and the QSub are a single taxpayer; the QSub’s assets, liabilities, income, deductions, and credits are all treated ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee